Real Estate Nagpur

Cut Duplicate Unsold Stock: Inventory Optimisation for Builders

By GeoSquare News Desk · Published 2026-10-31

Developers in Maharashtra often keep extra ready flats at each project site as a safety buffer. A builder with three projects may hold two unsold units in Nagpur, two in Pune and two in Mumbai, creating duplicate inventory against the same market uncertainty. This locks up capital and raises carrying costs.

What is multi-echelon inventory optimisation?

Multi-echelon inventory optimisation treats all project locations as one connected network rather than separate silos. Instead of adding safety stock at every site, the developer assesses total demand risk centrally and positions buffer units only where they are most likely to be absorbed. This reduces the overall number of unsold flats while keeping customer delivery commitments intact.

How builders can apply it

Start by mapping every project's ready stock, under-construction units and expected handover dates. Then use historical sales velocity from each micro-market – for example, Hingna in Nagpur versus Hinjewadi in Pune – to set a single network-level safety stock. If one location has slower absorption, the buffer can be shifted through channel incentives or pre-launch offers rather than holding extra units everywhere.

For mid-sized developers, the benefit is visible in working capital. Cutting duplicate inventory from five and a half months to two months of sales can release crores of rupees for land acquisition or project completion. It also reduces the pressure to offer steep discounts at the end of a financial year.

Market impact

As Maharashtra's residential market sees steady demand in tier-2 cities like Nagpur and Nashik, efficient inventory management becomes a competitive advantage. Developers who adopt a network-wide view will be better placed to manage cash flow, avoid distress sales and maintain price stability across their projects.